Silicon Valley Real Estate Market Update 6-15-2023
Here's the weekly round-up of news. Check it out, save it for later, and/or share it with your friends.
Dearth of new homes likely to hurt affordability
The affordable housing market in the U.S. is facing significant challenges, with setbacks in the construction industry leading to a predicted "production cliff" in the coming year, resulting in fewer new homes entering the market. Full Story: The New York Times
Consumers could be moderating spending on experiences
There are signs that consumers are pulling back on dining out, travel and other experiences after two years of so-called revenge spending in response to the pandemic. "We are seeing a broadening economic slowdown," said EY-Parthenon's Lydia Boussour. "It started with the housing sector, then manufacturing. And now we're seeing service activity stalling." Full Story: The Washington Post (6/11), The New York Times (6/13)
Tech on buyers' wish list, and they are willing to pay
Home buyers are willing to pay more for so-called smart homes that feature connected technology, according to Interpret's latest Smart Home Matrix. "Smart home makes a difference in one way or another for 85% of buyers and about 40% expect to pay nothing more for smart home products," says Brad Russell, vice president of Interpret. Full Story: TWICE (6/12)
Investment firm optimistic on multifamily projects
Banks may be leery of other construction sectors, but the multifamily market remains strong, says Bernie Wasserman, president of Participant Capital Advisors, which recently rolled out a $250 million fund for multifamily development in the Sun Belt region. "If somebody's generally coming to provide capital to the real estate market, multifamily is where they are most comfortable," Wasserman says. Full Story: Multifamily Dive (6/12)
Fed considers patient approach in assessing inflation data
Recent comments from Federal Reserve officials suggest they are less concerned that wage gains are driving inflation, a point that, in light of recent labor market data, supports the case for holding off on a rate increase this week. Meanwhile, lingering stress in the U.S. banking sector and a lack of consensus over how much tightening the economy can withstand further complicate policymakers' calculations on how to proceed. Full Story: Financial Times (6/12), Bloomberg (6/12), The Wall Street Journal (6/12)
8 strategies for maintaining a home as an asset
High-profile bank failures offer lessons worth sharing with your clients and customers. Full Story: REALTOR® Magazine (5/17)
Consumers’ Homeownership Aspirations Remain High Despite Higher Home Prices and Interest Rates
Two years ago, Fannie Mae's Economic & Strategic Research (ESR) Group asked consumers which factors are most important to them as they consider "the good life" – defined by the survey as the "life they'd like to have." All but one of the eleven listed factors were very important to a large majority of people across all demographic groups.
The most recent survey by Fannie Mae shows consumers' sense of "living the good life" has remained largely unchanged, although there is interesting nuance when examining the data across race, age, income, and homeownership status. Full Story: Fannie Mae
As the market awaits the Federal Reserve’s decision on rate hike in their upcoming meeting, inflation concerns persist and continue to keep mortgage rates elevated. Bank of Canada’s first rate-increase since January applied upward pressure on yields, but higher-than-expected jobless claims reported late last week provided a counterbalance that push rates down. While the market generally believes that the Fed will leave the policy rate untouched when they meet in the next couple of days, a hotter-than-expected Consumer Price Index on Tuesday could derail their plan and make things more complicated. With foreclosure activity slowly rising and home equity falling for the first time in over a decade, a pause in rate hike is an encouraging sign that will boost both supply and demand and will provide some stability to the market. Full Story CAR Market Minute Write Up
#siliconvalleytrusteepartners #seniorrealestatespecialist #siliconvalleyrealtor #realestatecalifornia #siliconvalleyrealestate #realestateservices #homeiswhereyouare #realestatemarketupdate #currentaffairsnews #funfacts #fastfacts #almostfriday #wisdomoftheages
